How to balance privacy with transparency by using secure multi-party computation.

1. Big Data, Big Brother,
and Financial Crises
© 2014 by Andrew W. Lo
All Rights Reserved
Andrew W. Lo, MIT CSAIL
SXSW 2014: Computing the Future
March 10, 2014

2. What Do We Know About
The Economy?
 Inflation: 0.1% in Jan (as of Feb 2014)
 Unemployment: 6.6% in Jan (as of Feb 2014)
 GDP growth: 2.4% in 2013Q4 (as of Feb 2014)
 Non-farm payroll: 113,000 in Jan (as of Feb 2014)
 Housing starts: 880,000 in Jan (as of Feb 2014)
 Fed balance sheet: $2,610,540MM (2/26/2014)
 etc.
© 2014 by Andrew W. Lo
All Rights Reserved

3. What Do We Know About
Hedge Funds and Shadow Banking?
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© 2014 by Andrew W. Lo
All Rights Reserved

4. Is There A Compromise Between
Privacy and Transparency?
© 2014 by Andrew W. Lo
All Rights Reserved

5. Secure Multi-Party Computation
© 2014 by Andrew W. Lo
All Rights Reserved
Y1 Y2 Yn-1
…
Yn Z1
Zn-1
…
Y1 =
S1+X1
Andrew
Y2 = Y1+
S2+X2
Alice
Yn = Yn-1+
Sn+Xn
Bob
Z1 = Yn
X1
Andrew
Z2 = Z1
X2
Alice
Zn = Zn-1
Xn
Bob

6. With the Right Technology,
Transparency and Privacy Can Both
Be Achieved!
© 2014 by Andrew W. Lo
All Rights Reserved

7. Thank You!